Utomi, Teriba suggest ways to improve economy

Foremost political economist Prof. Pat Utomi has canvassed the need for discipline, planning and a proper governance approach to improve the economy.

Utomi stated this at the breakfast meeting of the Society for Corporate Governance Nigeria (SCGN), held recently at the Oriental Hotels in Victoria Island.

Delivering a lecture themed “Nigeria Economy: Myths and facts”, Utomi described the nation’s current economy as a dé ja vu, clouded with uncertainties.

To become a global leader, Utomi said Nigeria must have a level of competitiveness, urging stakeholders to identify and focus on areas that would boost the economy.

According to Utomi, there was need for a growth framework in the nation’s economy to ensure that right policy choices were made, human capital, entrepreneurship and entrepreneurial skills adequately available.

Utomi also noted that growth and improvement of culture and value systems must be present and a proper leadership structure put in place.

He canvassed the need for affected stakeholders in the economy to be identified as well as an evaluation made on the impact of various choices made by them.

Utomi stressed the need for discipline and commitment of all stakeholders, especially as it relates to the credibility of the budget process.

Also speaking, the Chief Executive Officer, Economic Associates, Dr. Ayo Teriba noted that the nation’s economy has been greatly affected as a result of the global shocks thereby leading to a negative economic outlook.

Contrary to most beliefs, the fall of the naira, he said, was majorly as a result of a shortage of foreign exchange orchestrated by drop in oil prices and not necessarily the devaluation of the naira.

He noted that with or without oil, Nigeria remained the largest economy in Africa and will contribute $25billion out of the expected $100 billion of the whole continent.

Teriba explained that it has become necessary for the leaders to step aside and aggressively court foreign direct investments in order to boost the nation’s economy.

He emphasised the need to block leakages by stopping oil theft and abuse of the fuel subsidy regime, as well as duty/tax abuses.

Teriba also advised the withdrawal of ‘autonomy’ from all revenue-collecting agencies and capture value created by government interventions.

According to him, the government should encourage investors thereby causing either an outright liberalization or a co-partnership with the private sector.

“Strategic and impact component be infused in the budget planning with the sole aim of moving the economy forward and building an ultramodern nationwide rail transport system to reduce cost of manufacturing.

“Finally, monetary policy should be eased by demolishing existing monetary policy barricades. For Nigeria to reach its full potential and target, the leaders need to take full responsibility of planning and creating the adequate structures and policies needed to restore the economy,” he said.